Top CD rates today: May 28, 2025 | Best rate increases to 4.49% APY

Some savers who expect the Federal Reserve to lower interest rates further are locking in a fixed yield now on a certificate of deposit (CD). Opening a CD now ensures you’ll reap the benefit of a high annual percentage yield (APY) for the entire length of the CD’s term.

The best APY across CD terms has risen slightly to 4.49 percent (from 4.41 percent). This is thanks to First Internet Bank of Indiana recently increasing the APYs on some of its CDs. In all, leading APYs on various common CD terms range from 4.15 percent to 4.49 percent.

Bankrate’s table below shows the highest yields offered on widely available CDs, by term. It also lists national average CD rates and approximately how much you’d earn for each term with a $10,000 investment.

Today's CD rates by term

Note: Annual percentage yields (APYs) shown are as of May 28, 2025. APYs for some products may vary by region.

N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.

What are the benefits of opening a CD today?

There are pros and cons of CD investing. Here are some benefits of opening a CD:

Solid APYs that are out pacing inflation: Top CD rates remain competitive, and many are still outpacing inflation (2.3 percent).

“With market interest rates expected to decline this year, locking in current CD rates may be beneficial as financial institutions are likely to reduce future offerings,” says Derik Farrar, head of personal deposits at U.S. Bank. “Shorter terms are currently offering higher yields than longer terms due to an inverted yield curve, but longer-term CDs may provide benefit if market rates decline more than expected.”

Safety: As long as you opt for a Federal Deposit Insurance Corp. (FDIC)-insured bank or National Credit Union Administration (NCUA)-insured credit union, your money is protected up to $250,000 per depositor, per insured bank/credit union, per ownership category.

Guaranteed fixed returns: Once you open your CD, the rate will remain the same for the entire term (unless it’s a bump-up CD), and you will know exactly how much you are going to earn in interest.

Limited access to funds: The early withdrawal penalty can help you avoid temptation to dip into this account and allow your money to continue to grow.

CD inverted yield curve

Historically, longer-term CDs have often earned higher APYs than their shorter-term counterparts. In recent times, however, some shorter terms are earning higher APYs than longer ones. For instance, the highest one-year CD’s APY is currently greater than that of the top five-year CD. This has been the case for more than two years.

Higher APYs may make shorter terms more attractive to some savers, although keeping your money in a slightly-lower-earning CD with a longer term could earn you more in total interest, thanks to compound interest.

CD glossary

Here are some terms you’ll likely come across when choosing a CD.

• Add-on CD: An add-on CD enables you to make additional deposits after your initial investment. This feature affords more flexibility than traditional CDs, which only allow one deposit at the beginning of the term.
• Annual percentage yield (APY): A percentage that indicates how much interest a CD earns in one year, which takes into account the effect of compounding.
• Brokered CD: A type of CD issued by a bank but sold through a brokerage firm or other financial institution.
• Bump-up CD: Also known as a “raise-your-rate CD,” a bump-up CD provides savers with the option to increase the CD’s APY without having to change its term. Generally, only one rate increase is allowed during its term.
• CD ladder: An investment strategy that involves purchasing multiple CDs with varying maturity dates to provide liquidity and take advantage of higher rates.
• Early withdrawal penalty: A fee charged if funds are withdrawn from a CD before the maturity date. Penalties often range anywhere from 90 days to 365 days’ worth of interest.
• Grace period: A specific time after the maturity date during which an account holder can make changes to the CD without penalties. A grace period typically ranges from five to 14 days.
• IRA CD: A CD that’s held within an individual retirement account.
• Jumbo CD: A CD that has a high minimum balance requirement, typically $100,000, sometimes as low as $95,000. This type of CD tends to offer a higher interest rate than regular CDs with the same term.
• Minimum opening deposit: The lowest amount of money required to open a CD account, which can vary by institution. Some institutions don’t have a minimum deposit requirement.
• No-penalty CD: A type of CD that allows you to withdraw your money without facing a penalty while providing a fixed APY.
• Promotional CD: Also known as a bonus or special CD, it’s a CD with an above average APY. These may be offered by banks and credit unions as a way to obtain new customers.
• Share certificate: At credit unions, CDs are often referred to as "share certificates".

• Research methodology

  Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

  In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.